Microsoft on Thursday teamed up with a California startup on technology to track sales of cannabis seeds to local governments, a sign of growing acceptance of marijuana.

The deal with Kind Financial provides tracking technology for cannabis seeds to help keep products out of illegal markets.

Microsoft selected Kind to participate in its newly created "Microsoft Health and Human Services Pod for Managed Service Providers," according to a statement.

Kimberly Nelson, executive director of state and local government solutions from Microsoft, said the deal recognises that Microsoft's Azure "is the only cloud platform designed to meet government standards for the closely regulated cannabis compliance programs and we look forward to working together to help our government customers launch successful regulatory programs."

Kind's "Seed to Sale for Government" platform is used by governments and regulatory agencies to regulate and monitor all aspects of cannabis compliance.

"No one can predict the future of cannabis legalisation, however, it is clear that legalised cannabis will always be subject to strict oversight and regulations similar to alcohol and tobacco; and, Kind is proud to offer governments and regulatory agencies the tools and technology to monitor cannabis compliance," said chief executive David Dinenberg.